10-Q 1 vishayintertech_10q.htm QUARTERLY REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended           September 28, 2024

☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 011-07416

Vishay Intertechnology, Inc.
(Exact name of registrant as specified in its charter)

Delaware  
38-1686453
(State or Other Jurisdiction of Incorporation)
  
(I.R.S. Employer Identification Number)
     
63 Lancaster Avenue
Malvern, Pennsylvania 19355-2143
  
610-644-1300
(Address of Principal Executive Offices)
  
(Registrant’s Area Code and Telephone Number)

Securities registered pursuant to Section 12(b) of the Act:
       
 
Title of each class
Trading symbol
Name of exchange on which registered
  
  Common stock, par value $0.10 per share
 VSH
 New York Stock Exchange LLC
  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)
☒Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 
Large Accelerated Filer ☒
Accelerated filer ☐
 
Non-accelerated filer ☐
Smaller reporting company ☐
 
Emerging growth company ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
☐ Yes  ☒ No

As of November 4, 2024 the registrant had 123,741,102 shares of its common stock (excluding treasury shares) and 12,097,148 shares of its Class B common stock outstanding.





















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2
VISHAY INTERTECHNOLOGY, INC.
FORM 10-Q
September 28, 2024
CONTENTS

     
Page Number
   
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
     
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
   
         
     
3

PART I  - FINANCIAL INFORMATION

Item 1. Financial Statements

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)

   
September 28, 2024
    
December 31, 2023
  
Assets
            
Current assets:
            
Cash and cash equivalents
  
$
643,771
    
$
972,719
  
Short-term investments
    
13,491
      
35,808
  
Accounts receivable, net
    
428,558
      
426,674
  
Inventories:
                
Finished goods
    
173,353
      
167,083
  
Work in process
    
290,597
      
267,339
  
Raw materials
    
223,254
      
213,098
  
Total inventories
    
687,204
      
647,520
  
                 
Prepaid expenses and other current assets
    
237,749
      
214,443
  
Total current assets
    
2,010,773
      
2,297,164
  
                 
Property and equipment, at cost:
                
Land
    
84,851
      
77,006
  
Buildings and improvements
    
769,865
      
719,387
  
Machinery and equipment
    
3,291,983
      
3,053,868
  
Construction in progress
    
295,147
      
290,593
  
Allowance for depreciation
    
(2,963,103
)
    
(2,846,208
)
Property and equipment, net
    
1,478,743
      
1,294,646
  
                 
Right of use assets
    
125,969
      
126,829
  
                 
Deferred income taxes
     160,900       137,394  
                 
Goodwill
    
255,323
      
201,416
  
                 
Other intangible assets, net
    
83,427
      
72,333
  
                 
Other assets
    
105,223
      
110,141
  
Total assets
  
$
4,220,358
    
$
4,239,923
  

Continues on following page.
4

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(Unaudited - In thousands)

   
September 28, 2024
    
December 31, 2023
  
Liabilities and equity
            
Current liabilities:
            
Trade accounts payable
  
$
209,864
    
$
191,002
  
Payroll and related expenses
    
150,726
      
161,940
  
Lease liabilities
    
27,625
      
26,485
  
Other accrued expenses
    
275,159
      
239,350
  
Income taxes
    
51,052
      
73,098
  
Total current liabilities
    
714,426
      
691,875
  
                 
Long-term debt less current portion
    
820,799
      
818,188
  
U.S. transition tax payable
    
-
      
47,027
  
Deferred income taxes
    
112,110
      
95,776
  
Long-term lease liabilities
    
101,012
      
102,830
  
Other liabilities
    
105,834
      
87,918
  
Accrued pension and other postretirement costs
    
192,614
      
195,503
  
Total liabilities
    
2,046,795
      
2,039,117
  
                 
Equity:
                
Vishay stockholders' equity
                
Common stock
    
13,358
      
13,319
  
Class B convertible common stock
    
1,210
      
1,210
  
Capital in excess of par value
    
1,302,335
      
1,291,499
  
Retained earnings
    
1,035,395
      
1,041,372
  
   Treasury stock (at cost)
     (199,440 )     (161,656 )
Accumulated other comprehensive income
    
14,808
   
10,337
  
Total Vishay stockholders' equity
    
2,167,666
      
2,196,081
  
Noncontrolling interests
    
5,897
      
4,725
  
Total equity
    
2,173,563
      
2,200,806
  
Total liabilities and equity
  
$
4,220,358
    
$
4,239,923
  

See accompanying notes.
5

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)

   
Fiscal quarters ended
  
   
September 28, 2024
    
September 30, 2023
  
             
Net revenues
  
$
735,353
    
$
853,653
  
Costs of products sold
    
584,470
      
616,010
  
Gross profit
    
150,883
      
237,643
  
                 
Selling, general, and administrative expenses
    
128,545
      
122,513
  
Restructuring and severance costs
     40,614       -  
Operating income (loss)
    
(18,276
)
    
115,130
  
                 
Other income (expense):
                
Interest expense
    
(6,596
)
    
(7,153
)
Loss on early extinguishment of debt
     -       (18,874 )
Other
    
803
      
7,409
  
Total other income (expense)
    
(5,793
)
    
(18,618
)
                 
Income (loss) before taxes
    
(24,069
)
    
96,512
  
                 
Income tax expense (benefit)
    
(5,076
)
    
30,557
  
                 
Net earnings (loss)
    
(18,993
)
    
65,955
  
                 
Less: net earnings (loss) attributable to noncontrolling interests
    
306
      
426
  
                 
Net earnings (loss) attributable to Vishay stockholders
  
$
(19,299
)
  
$
65,529
  
                 
Basic earnings (loss) per share attributable to Vishay stockholders
  
$
(0.14)
    
$
0.47
  
                 
Diluted earnings (loss) per share attributable to Vishay stockholders
  
$
(0.14)
    
$
0.47
  
                 
Weighted average shares outstanding - basic
    
136,793
      
139,083
  
                 
Weighted average shares outstanding - diluted
    
136,793
      
140,001
  
                 
Cash dividends per share
  
$
0.10
    
$
0.10
  

See accompanying notes.
6

VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Comprehensive Income
(Unaudited - In thousands)

   
Fiscal quarters ended
  
   
September 28, 2024
    
September 30, 2023
  
             
Net earnings (loss)
  
$
(18,993
)
  
$
65,955
  
                 
Other comprehensive income (loss), net of tax
                
                 
Pension and other post-retirement actuarial items
    
511
      
363
  
                 
Foreign currency translation adjustment
    
31,266
      
(38,901
)
                 
Other comprehensive income (loss)
    
31,777
      
(38,538
)
                 
Comprehensive income
    
12,784
      
27,417
  
                 
Less: comprehensive income attributable to noncontrolling interests
    
306
      
426
  
                 
Comprehensive income attributable to Vishay stockholders
  
$
12,478
    
$
26,991
  

See accompanying notes.
7

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Operations
(Unaudited - In thousands, except per share amounts)

   
Nine fiscal months ended
  
   
September 28, 2024
    
September 30, 2023
  
             
Net revenues
  
$
2,222,871
    
$
2,616,809
  
Costs of products sold
    
1,738,711
      
1,842,980
  
Gross profit
    
484,160
      
773,829
  
                 
Selling, general, and administrative expenses
    
381,234
      
365,515
  
Restructuring and severance costs
     40,614       -  
Operating income
    
62,312
      
408,314
  
                 
Other income (expense):
                
Interest expense
    
(19,749
)
    
(18,677
)
Loss on early extinguishment of debt
     -       (18,874 )
Other
    
13,901
      
15,995
  
Total other income (expense)
    
(5,848
)
    
(21,556
)
                 
Income before taxes
    
56,464
      
386,758
  
                 
Income tax expense
    
20,134
      
113,199
  
                 
Net earnings
    
36,330
      
273,559
  
                 
Less: net earnings attributable to noncontrolling interests
    
1,172
      
1,211
  
                 
Net earnings attributable to Vishay stockholders
  
$
35,158
    
$
272,348
  
                 
Basic earnings per share attributable to Vishay stockholders
  
$
0.26
    
$
1.95
  
                 
Diluted earnings per share attributable to Vishay stockholders
  
$
0.25
    
$
1.94
  
                 
Weighted average shares outstanding - basic
    
137,281
      
139,828
  
                 
Weighted average shares outstanding - diluted
    
138,039
      
140,577
  
                 
Cash dividends per share
  
$
0.30
    
$
0.30
  

See accompanying notes.

8

VISHAY INTERTECHNOLOGY, INC.
Consolidated Statements of Comprehensive Income
(Unaudited - In thousands)

   
Nine fiscal months ended
  
   
September 28, 2024
    
September 30, 2023
  
             
Net earnings
  
$
36,330
    
$
273,559
  
                 
Other comprehensive income (loss), net of tax
                
                 
Pension and other post-retirement actuarial items
    
(1,297
)
    
647
  
                 
Foreign currency translation adjustment
    
5,768
      
(15,703
)
                 
Other comprehensive income (loss)
    
4,471
      
(15,056
)
                 
Comprehensive income
    
40,801
      
258,503
  
                 
Less: comprehensive income attributable to noncontrolling interests
    
1,172
      
1,211
  
                 
Comprehensive income attributable to Vishay stockholders
  
$
39,629
    
$
257,292
  

See accompanying notes.
9

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(Unaudited - In thousands)

   
Nine fiscal months ended
  
   
September 28, 2024
    
September 30, 2023
  
             
Operating activities
            
Net earnings
  
$
36,330
    
$
273,559
  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                
Depreciation and amortization
    
155,272
      
133,910
  
Gain on disposal of property and equipment
    
(1,168
)
    
(495
)
Inventory write-offs for obsolescence
    
27,163
      
27,469
  
Deferred income taxes
    
(13,667
)
    
20,654
  
     Stock compensation expense
     14,928       11,610  
Loss on early extinguishment of debt
     -       18,874  
Other
    
14,506
      
7,574
  
   Change in U.S. transition tax liability
     (37,622 )     (27,670 )
   Change in repatriation tax liability
     (15,000 )     -  
Net change in operating assets and liabilities, net of effects of businesses acquired
    
(74,696
)
    
(106,050
)
Net cash provided by operating activities
    
106,046
      
359,435
  
                 
Investing activities
                
Capital expenditures
    
(175,175
)
    
(184,079
)
Proceeds from sale of property and equipment
    
1,397
      
1,034
  
Purchase of businesses, net of cash acquired
     (200,185 )     (5,003 )
Purchase of short-term investments     (101,263 )     (82,166 )
Maturity of short-term investments
    
123,561
      
308,021
  
Other investing activities
    
(1,220
)
    
(1,219
)
Net cash provided by (used in) investing activities
    
(352,885
)
    
36,588
  
                 
Financing activities
                
Proceeds from long-term borrowings
     -       750,000  
Repurchase of convertible senior notes due 2025
     -       (386,745 )
Net payments on revolving credit facility
    
-
      
(42,000
)
Debt issuance and amendment costs
     (1,062 )     (26,547 )
Cash paid for capped call
     -       (94,200 )
Dividends paid to common stockholders
    
(37,467
)
    
(38,207
)
Dividends paid to Class B common stockholders
    
(3,629
)
    
(3,629
)
Repurchase of common stock held in treasury
     (37,784 )     (57,661 )
Distributions to noncontrolling interests
     -       (867 )
Cash withholding taxes paid when shares withheld for vested equity awards
    
(4,092
)
    
(3,994
)
Net cash provided by (used in) financing activities
    
(84,034
)
    
96,150
  
Effect of exchange rate changes on cash and cash equivalents
    
1,925
      
(7,879
)
                 
Net increase (decrease) in cash and cash equivalents
    
(328,948
)
    
484,294
  
                 
Cash and cash equivalents at beginning of period
    
972,719
      
610,825
  
Cash and cash equivalents at end of period
  
$
643,771
    
$
1,095,119
  

See accompanying notes.
10

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Equity
(Unaudited - In thousands, except share and per share amounts)

   
Common
Stock
    
Class B
Convertible
Common
Stock
    
Capital in
Excess of Par
Value
    
Retained
Earnings
     Treasury Stock
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Total Vishay
Stockholders'
Equity
    
Noncontrolling
Interests
    
Total
Equity
  
Balance at December 31, 2022
  
$
13,291
    
$
1,210
    
$
1,352,321
    
$
773,228
     $ (82,972 )  
$
(10,827
)
  
$
2,046,251
    
$
3,899
    
$
2,050,150
  
Net earnings
    
-
      
-
      
-
      
111,781
       -
      
-
      
111,781
      
408
      
112,189
  
Other comprehensive income (loss)
    
-
      
-
      
-
      
-
       -
      
19,859
      
19,859
      
-
      
19,859
  
Issuance of stock and related tax withholdings for vested restricted stock units (254,513 shares)
    
25
      
-
      
(3,678
)
    
-
       -
      
-
      
(3,653
)
    
-
      
(3,653
)
Dividends declared ($0.10 per share)
    
-
      
-
      
14
      
(14,034
)
     -
      
-
      
(14,020
)
    
-
      
(14,020
)
Stock compensation expense
    
-
      
-
      
2,965
      
-
       -
      
-
      
2,965
      
-
      
2,965
  
Repurchase of common stock held in treasury (916,221 shares)
     -       -       -       -
       (20,173 )     -
       (20,173 )     -       (20,173 )
Balance at April 1, 2023
  
$
13,316
    
$
1,210
    
$
1,351,622
    
$
870,975
     $ (103,145 )  
$
9,032
    
$
2,143,010
    
$
4,307
    
$
2,147,317
  
Net earnings
    
-
      
-
      
-
      
95,038
       -
      
-
      
95,038
      
377
      
95,415
  
Other comprehensive income
    
-
      
-
      
-
      
-
       -
      
3,623
      
3,623
      
-
      
3,623
  
Distributions to noncontrolling interests
    
-
      
-
      
-
      
-
       -
      
-
      
-
      
(867
)
    
(867
)
Dividends declared ($0.10 per share)
    
-
      
-
      
14
      
(13,951
)
     -
      
-
      
(13,937
)
    
-
      
(13,937
)
Stock compensation expense
    
-
      
-
      
3,117
      
-
       -
      
-
      
3,117
      
-
      
3,117
  
Repurchase of common stock held in treasury (847,202 shares)     -       -       -
       -
       (20,226 )     -
       (20,226 )     -       (20,226 )
Balance at July 1, 2023
  
$
13,316
    
$
1,210
    
$
1,354,753
    
$
952,062
     $ (123,371 )  
$
12,655
    
$
2,210,625
    
$
3,817
    
$
2,214,442
  
Net earnings
    
-
      
-
      
-
      
65,529
       -
      
-
      
65,529
      
426
      
65,955
  
Other comprehensive income (loss)
    
-
      
-
      
-
      
-
       -
      
(38,538
)
    
(38,538
)
    
-
      
(38,538
)
Issuance of stock and related tax withholdings for vested restricted stock units (21,617 shares)
     2       -       (343 )     -       -       -       (341 )     -       (341 )
Dividends declared ($0.10 per share)
    
-
      
-
      
12
      
(13,891
)
     -
      
-
      
(13,879
)
    
-
      
(13,879
)
Stock compensation expense
    
-
      
-
      
5,528
      
-
       -
      
-
      
5,528
      
-
      
5,528
  
Repurchase of common stock held in treasury (630,446 shares)     -       -       -
       -
       (17,262 )     -
       (17,262 )     -       (17,262 )
Capped call transactions, net of tax
     -       -       (73,382 )     -
       -
       -       (73,382 )     -       (73,382 )
Balance at September 30, 2023
  
$
13,318
    
$
1,210
    
$
1,286,568
    
$
1,003,700
     $ (140,633 )  
$
(25,883
)
  
$
2,138,280
    
$
4,243
    
$
2,142,523
  

 Continues on following page.
11

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Equity (continued)
(Unaudited - In thousands, except share and per share amounts)


   
Common
Stock
    
Class B
Convertible
Common
Stock
    
Capital in
Excess of Par
Value
    
Retained
Earnings
     Treasury Stock
   
Accumulated
Other
Comprehensive
Income (Loss)
    
Total Vishay
Stockholders'
Equity
    
Noncontrolling
Interests
    
Total
Equity
  
Balance at December 31, 2023
   $ 13,319     $ 1,210     $ 1,291,499     $ 1,041,372     $ (161,656 )   $ 10,337     $ 2,196,081     $ 4,725     $ 2,200,806  
Net earnings
     -       -       -       30,924       -       -       30,924       519       31,443  
Other comprehensive income (loss)
     -       -       -       -       -       (20,022 )     (20,022 )     -       (20,022 )
Issuance of stock and related tax withholdings for vested restricted stock units (371,055 shares)
     38
       -
       (4,091 )     -
       -
       -
       (4,053 )     -
       (4,053 )
Dividends declared ($0.10 per share)
     -
       -
       13
       (13,765 )     -
       -
       (13,752 )     -
       (13,752 )
Stock compensation expense
     -
       -
       5,344
       -
       -
       -
       5,344
       -
       5,344
  
Repurchase of common stock held in treasury (565,420 shares)
     -
       -
       -
       -
       (12,538 )     -
       (12,538 )     -
       (12,538 )
Balance at March 30, 2024
   $ 13,357     $ 1,210     $ 1,292,765     $ 1,058,531     $ (174,194 )   $ (9,685 )   $ 2,181,984     $ 5,244     $ 2,187,228  
Net earnings
     -
       -
       -
       23,533
       -
       -
       23,533
       347
       23,880
  
Other comprehensive income (loss)
    -
       -
       -
       -
       -
       (7,284 )     (7,284 )     -
       (7,284 )
Issuance of stock and related tax withholdings for vested restricted stock units (19,809 shares)
     1
       -
       (6 )     -
       -
       -
       (5 )     -
       (5 )
Dividends declared ($0.10 per share)
     -
       -
       13
       (13,713 )     -
       -
       (13,700 )     -
       (13,700 )
Stock compensation expense
     -
       -
       3,949
       -
       -
       -
       3,949
       -
       3,949
  
Repurchase of common stock held in treasury (554,587 shares)     -
       -
       -
       -
       (12,622 )     -
       (12,622 )     -
       (12,622 )
Balance at June 29, 2024
   $ 13,358     $ 1,210     $ 1,296,721     $ 1,068,351     $ (186,816 )   $ (16,969 )   $ 2,175,855     $ 5,591     $ 2,181,446  
Net earnings (loss)
     -
       -
       -
       (19,299 )     -
       -
       (19,299 )     306
       (18,993 )
Other comprehensive income (loss)
     -
       -
       -
       -
       -
       31,777
       31,777
       -
       31,777
  
Issuance of stock and related tax withholdings for vested restricted stock units (4,149 shares)     -
       -
       (34 )     -
       -
       -
       (34 )     -
       (34 )
Dividends declared ($0.10 per share)
     -
       -
       13
       (13,657 )     -
       -
       (13,644 )     -
       (13,644 )
Stock compensation expense
     -
       -
       5,635
       -
       -